Netformx Signs Definitive Agreement to Acquire VARcompliance

Acquisition will help value added resellers, service providers and
systems integrators drive more profitability into their business

January 31, 2013 06:05 AM Eastern Standard Time

SAN JOSE, Calif.--(BUSINESS WIRE)--Netformx®,
the leader in collaborative requirements-to-order solutions, has signed
a definitive agreement to acquire VARcompliance,
LLC (VARcompliance), the leading provider of automated vendor
certification and incentive reward tracking, monitoring and management
solutions. The acquisition will make it significantly easier for
solution providers to take advantage of vendor incentive programs and
manage certifications with leading equipment vendors including Cisco
(NASDAQ: CSCO). Effective immediately, Netformx is now the exclusive
global reseller for VARcompliance.

VARcompliance’s VxP SaaS platform, helps technology providers increase
profitability by automating the process of capturing more reward
dollars, removing labor-intensive and manual tasks to ensure compliance,
and significantly improving the visibility and management of vendor
reward and certification programs. Customers will benefit from reducing
the time and cost required to track certifications, improving visibility
into complex reward programs while designing solutions, and
consolidating audit and compliance management. As a result, customers
can increase their profitability with faster and more accurate
proposals, greater promotional program participation, and tighter
relationships with their equipment vendor partners and distributors.

Supporting Quotes

“With the need for IT Solution Providers to grow capital in order to
invest in building for the future, they must become efficient in
maximizing their margins through up front and backend vendor programs.
Without the systems and efficiencies to leverage these programs, they
stand to lose 10s of 1,000s of dollars. Netformx and VARcompliance are
both trusted partners who provide great value in generating
opportunities for increased margin, leveraging our critical
engineering and management resources, and providing the tools needed
to help partners streamline their operations. The combination of the
two companies will significantly enhance the value they play in the IT
solution marketplace as they have hit upon three fundamental business
enablers – helping increase profitability, lowering operational costs,
and automating tasks that are labor intensive and prone to errors.
This acquisition just makes sense,” said Paul Cronin, Senior Vice
President at Atrion Networking Corporation.

“The acquisition of VARcompliance will strengthen the relationship
between our customers and their partners by addressing the challenges
associated with taking full advantage of reward programs and managing
certifications,” said Ittai Bareket, Chief Executive Officer at
Netformx. “This has been a key area of focus for Netformx as it
results in measurable profitability improvements for our customers.
VARcompliance is by far the best solution in the marketplace and it
made sense for us to add them to our requirements-to-order solutions.”

“Customers can continue to rely on VARcompliance when they want to
significantly increase vendor reward dollar capture, while driving
down the costs associated with certification tracking and managing
incentive reward programs,” said George Mellor, President at
VARcompliance. “Becoming part of Netformx will greatly expand market
reach for both companies and provide a consolidated solution set
making it even easier for our joint customers to achieve higher
profitability.”

Netformx is the leader in collaborative requirements-to-order software
solutions for enterprise technology. Netformx’s customers
include service providers, systems integrators and equipment vendors who
rely on the company’s award-winning solutions
to create and sell the information, communications, and technology
solutions that power business.